A necessary element of a contract is that the parties must have the intention to be legally bound. Which of the following is true with regard to this element of a contract?
A) In contract cases, the court hears evidence as to what the parties actually had in their minds at the time of contract.
B) If the parties fail to state expressly in their contract their intention to be legally bound, there is no contract.
C) The court always just presumes an intention to be legally bound, so this is never an issue in a contract case.
D) Family members can never have the intent to be legally bound in their agreements because family matters are private matters.
E) The court can presume the intention to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.

Question

Quizplus · Accepted Answer

While the court can presume the intention to be legally bound, a party to the contract can bring forward contrary evidence to rebut the presumption. Therefore, option E is true. Options A, B, and D are incorrect as they are either too strict or too broad, and they do not reflect the nuances of contract law. Option C is incorrect because the court does not always presume the intention to be legally bound.

A Necessary Element of a Contract Is That the Parties